Seller closing costs in Texas typically total 1-3% of the sale price, not including real estate commissions. The main costs are: real estate commission (5-6% total split between buyer's and seller's agents), title insurance (seller usually pays for owner's policy in Texas, $1,500-$3,000), escrow or settlement fee ($300-$800), recording fees ($50-$150), prorated property taxes (varies by closing date), HOA transfer fees ($100-$400), and any repairs or credits negotiated with the buyer.
Real Estate Commission
The largest closing cost is the real estate commission, typically 5-6% of the sale price split between the listing agent and buyer's agent. On a $350,000 home, that is $17,500-$21,000. This is paid at closing from the sale proceeds. The commission is negotiable and varies by agent and services provided. Some agents offer flat-fee or discount commission structures. Discuss the commission structure with your agent before signing a listing agreement.
Title Insurance and Escrow Fees
In Texas, the seller typically pays for the owner's title insurance policy, which protects the buyer against title defects. Cost is approximately $1,500-$3,000 depending on the sale price (based on Texas Department of Insurance rate tables). The seller also pays for the title search ($200-$400) and the escrow/settlement fee ($300-$800). These fees are set by the title company and are regulated in Texas.
Prorated Expenses and Transfer Fees
Prorated property taxes: you pay taxes for the days you owned the home in the current tax year. On a $350K home in Bexar County with $5,000 annual taxes, selling on June 30 means you owe approximately $2,500 in prorated taxes. Prorated HOA dues: if you prepaid quarterly or annual HOA fees, the buyer reimburses you for the unused portion. HOA transfer fee: typically $100-$400 for the HOA to process the new owner. City or county transfer taxes: none in Bexar County.
Negotiable Costs and Credits
Some costs are negotiable in the contract. Common seller credits include: buyer's closing costs (1-3% of purchase price, often used to buy down the buyer's interest rate), home warranty ($400-$700), inspection repair credits, and appraisal gap coverage. When the market is slow or the home has been on the market a while, sellers may offer more credits. In a strong seller's market, sellers may offer fewer or no credits.
Sample Seller Net Sheet (350K Home)
Sale price: $350,000. Less 5.5% commission: $19,250. Less owner's title policy: $2,000. Less title search: $300. Less escrow fee: $500. Less recording fees: $100. Less prorated taxes: $2,500. Less HOA transfer: $200. Estimated seller net: $325,150. This is approximately 92.9% of the sale price. Your actual net depends on your specific commission rate, tax proration date, and any credits or repairs. Your agent should provide a net sheet before listing.